MacInTouchDropbox Lied to Users About Data Security, Complaint to FTC Alleges
Dropbox, the wildly popular online storage system, deceived users about the security and encryption of its services, putting it at a competitive advantage, according to an FTC complaint filed Thursday by a prominent security researcher.
The FTC complaint charges Dropbox (.pdf) with telling users that their files were totally encrypted and even Dropbox employees could not see the contents of the file. Ph.D. student Christopher Soghoian published data last month showing that Dropbox could indeed see the contents of files, putting users at risk of government searches, rogue Dropbox employees, and even companies trying to bring mass copyright-infringement suits.

"Design is not just what it looks like and feels like. Design is how it works."
Steve Jobs

Tim Stevens
Regarding using Dropbox, their T&C say:
"By submitting your stuff to the Services, you grant us (and those we work with to provide the Services) worldwide, non-exclusive, royalty-free, sublicenseable rights to use, copy, distribute, prepare derivative works (such as translations or format conversions) of, perform, or publicly display that stuff to the extent reasonably necessary for the Service."
Many people seem happy with these terms, but I prefer to retain ownership of my material.
Tim.

"Design is not just what it looks like and feels like. Design is how it works."
Steve Jobs